The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is

According to Keynes,

A) prices decline as inventories increase. B) prices increase as inventories increase. C) prices decrease as inventories decrease. D) prices are sticky and will probably not respond to a change in inventories.

The effect of opening trade between countries is

a. living standards rise in the country with efficient, high-pay workers. b. both countries can exploit comparative advantage and increase productivity. c. total world production increases as both countries specialize in specific goods. d. All of the above are correct.